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With households possibly retrenching, corporations are not likely to increase their capital expenditures.
They either have to increase their capital or reduce their riskier assets.
Over a third of respondents plan to increase their capital investment in the coming year.
Banks are selling assets to increase their capital buffers amid the regulatory changes.
There are three straightforward ways for banks to increase their capital ratios.
The changes come as regulators are requiring European banks to increase their capital reserves and reduce financial risks.
"The megabanks have a choice to make: they can increase their capital or bring down their size".
In essence, the government has weakened the banks' access to capital while demanding they increase their capital ratios.
LONDON - Europe's banks and regulators are at odds about how financial institutions should increase their capital reserves.
Banks also must meet new rules to gradually increase their capital cushions, eating into the amount they can invest.
To supplement the sales, banks are finding ways to restructure their debt in a bid to increase their capital levels.
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